Retail Credit Card Interest Rates Soar to Record High of Over 30% APR

Federal Reserve's continual rate hikes blamed for costlier borrowing as Bankrate reveals 107 retail credit cards now average an APR of 28.93%; some high street cards even go as far as charging 33.24%.

The annual percentage rate (APR) on retail credit cards has hit a record high of 28.93% on average, up from 26.72% in 2022, far above the average APR of 21.19% for all credit cards.
The Federal Reserve's ongoing series of interest rate hikes has enabled credit card companies to increase their cards' interest rates, indirectly increasing the cost of borrowing for consumers.
If a credit card holder finances a $1,000 purchase at the average retail card interest rate of 28.93% and only makes minimum payments, that cardholder will owe $715 in interest and be in debt for 50 months.
16 retail credit cards, including some high street cards, charge 33.24% APR, and the high APRs are making shopping and paying off retail debts increasingly challenging.
Total U.S. consumer credit card debt reached a record of $1.03 trillion in the second quarter of this year, up by 17% from last year.
Experts caution against opening store-only credit cards unless balances can be paid off in full and on time, given the exceptionally high interest rates most of these cards charge.